Hoosier Banker 31 some big investment opportunities, because their strategy was too invested in a perception that allowed no room for any world that didn’t involve higher and rising interest rates. A world that is still worlds away. What If You Didn’t Have to be Right? What about risk managers who operate without an overriding market bias? How do managers manage without an emotional investment in a rate forecast? They do it by allowing for the possibility of multiple outcomes, even some unlikely ones. Those portfolio managers who invested in 20-year municipal bonds back in 2009 didn’t do it because they “knew” rates were going to fall, which they did. They did it because they didn’t know what rates were going to do. They loaded up on high cash-flow instruments at the same time and for the same reason: They didn’t know where rates were headed, but they wanted to be ready for anything. And they have been. Their long-term, high-yielding bonds have provided much-needed income during times when yields trended downward, and their reservoir of short-term cash flow has been a repricing boon for those times when rates trended higher or back-up liquidity was needed. Successful risk managers don’t have to be smart enough to see into the future. They just have to be smart enough to realize they can’t. HB TAKING IT EASY Mike Ludden, vice chairman of the boards of directors of First Savings Financial Group and First Savings Bank, Clarksville, has retired from board service after 27 years. He previously served as chairman of the board of First Savings Bank from 2005 to 2017. Ludden is president and CEO of L. Thorn Company Inc., New Albany. Sue Wallpe, senior vice president and chief operating officer of Alliance Bank, Francesville, has retired after 33 years of service. She was the bank’s first female vice president. Jill Butler, vice president and compliance officer of Alliance Bank, Francesville, has retired after 36 years of service. She served in a variety of positions including teller, trainer and lender. She also has concluded a six-year term on the Benton Community Foundation board of directors. Butler is a graduate of Purdue University. Barb Schultz, vice president and human resources director of Alliance Bank, Francesville, has retired after 14 years of service. HB The Indiana Bankers Association has made the switch to .BANK! • Visit the IBA website at: indiana.bank • Former indianabankers.org links will automatically redirect to the new site. Read more about this change in the upcoming May/June Hoosier Banker. HB Introducing ‘indiana.bank’
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